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tv   Varney Company  FOX Business  November 15, 2012 9:20am-11:00am EST

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♪ imus in the morning ♪ >> over and over the president said tax the rich. government bean counters say, okay, it will cost jobs. good morning, everyone, 200,000, that's jobs lost next year if taxes are raised on the top 2% from the congressional budget office, but the president repeated his tax for the rich policies several times at that press conference and still on jobs, a huge jump in benefit claims, not a good sign. perhaps there's one more reason why the obama stock selloff continues in the six trading session since the election, the dow dropped 670, it will be down again today.
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here is another reason for today's selling, a broader investigation of foreign bribery charges at wal-mart. when at that came out this morning, the whole market turned south. that's where we are this thursday morning. more taxes, more selling and four more years. "varney & company" about to begin. cer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade. ♪ [ male announcer ] they are a glowing example of what it means to be the best. and at this special time of year, they shine even brighter.
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>> the big story of the day. the president's version of compromise. take it or leave it it, but, yeah, tax the rich. and even if it hurts the economy. the cbo nonpartisan analysis, 200,000 jobs are lost, can we afford that, the economy is weak and the debt is skyrocketing and the president dug in his heels. >> we should not hold the middle class hostage while we ddbate the wealthy, we cannot afford to extend the tax cuts for the wealthy.
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what i'm not going to do is extend bush tax cuts for the wealthiest 2% that we can't afford when it comes to the top 2%. what i'm not going to do is to extend further a tax cut for folks who don't need it which would cost close to a trillion dollars. >> well, it was around the time of that news conference that the dow started to fall off a cliff. you can see it, a big drop for the stock market in the afternoon as the president was speaking taxing the rich. the dow has lost points since the election. the day at the white house, a group calling themselves patriotic millionaires will meet with senior administration officials, not the president. this is a group of millionaires in favor of higher taxes on the wealthy. it's not just taxing the rich, there are 17 other small tax changes in the works according to the wall street journal. our good friends at cme would
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phase higher taxes and trades and oil and gas producers would lose some deductions for expenses and even golf courses would be hit, winding away a tax cut for golf owners that would maze 600 million a year, not just the rich, a lot of people and businesses will be nickel and dimed. and the markets responded to four more years of president obama. nearly 700 point drop in the week since the election. and the rich are cashing out. we'll cover that and we'll give you the opening bell coming up next.
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>> and what's going to happen when trading begins on wall street. it's thursday morning, and we're what, eight days after the election and six trading sessions, i believe and the dow industrials have dropped 674 points in that time frame. it's the obama selloff. does it continue today? got a couple of items in the news background and let's see where we go here. number one, 439,000 new claims for jobless benefits last week, only part of that big jump can be ascribed to the hurricane sandy, only part of it. maybe the underlying trend is a worsening employment position. and as for the consumer price ind index, it looks benign. only .1%, up 1/10 of 1%, and so,
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it looks like no inflation to speak of, certainly not measured inflation by the government. but we do have that big jump in jobless claims, and we also have a forecast of 2.1% growth, the next year, and the economy on standard & poor's, that's the news back drop and the big deal here is does the obama selloff continue this thursday morning and let's see. the opening bell has stopped ringing and trading has begun and we're dead flat to slightly higher. by the time the stocks are open, you can expect the dow to be on the down side and it is, three points lower as of now. listen to this one, we've got news on wal-mart and it's driving that particular stock down. it's revealed that an internal investigation finds possible violations of foreign bribery laws in other countries besides mexico. and the scandal in mexico erupted last year and wal-mart says it's broader than that one country and reports that its
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sales were down, not good. so, nicole, have we opened lower for wal-mart? >> you know, i'm looking through to try to find the good news, there's little good news, you really have given the points here and we're down about 2 1/2% and sales are below estimates and their outlook is narrower and not good news, it's trailing estimates. and also the fact that traffic, the amount of people going into the stores is somewhat consolidated before china, conserve gasoline, believe it or not. that's not the good news and they predict the holiday season to obviously be highly competitive. not great news here for wal-mart. stuart: i'm looking for the ray of sunshine for wal-mart and frankly, i don't see it. all right, nicole, thank you very much indeed. there's a look at the big board, and check out the dow for a second. we're wondering does the obama selloff continue? yes, it does. this is not huge selling by any means. 16 points lower, but you add it all up and as of right now, we are roughly 700 points down since the day after president obama was reelected for four
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more years, now, this. the rich, they're dumping high dividend stocks, and they're selling assets this year, and they're trying to avoid paying more in profits and dividend taxes which will hit next year, president obama said in a news conference yesterday, he's open to compromise on the fiscal cliff thing, but, wealthy americans, they will be taxed more. >> i'm open to compromise and open to new ideas and hearing republican after republican agree on the need for new revenue from the wealthiest americans if we're serious about reducing the deficits. stuart: he wants to raise tax rates on income and dividends and profits as well. joining us now, steve is the author of "how rich people think", steve, welcome to the program. good to have you with us, sir. >> hey, thanks, stuart. stuart: my premise is the stock market is way down because a lot of people, rich people in
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particular, are selling stocks on which they've already made a profit. they sell now, they get a lower tax rate than if they sold next year and took their profit in 2013. what do you say? >> absolutely. this is the time to get out and we're seeing it on the dow, we're seeing it in the different sectors, i mean, people are selling off like crazy and it's the right play. i think. stuart: it's tax driven? >> oh, i think so. yeah, i think it's-- i mean, since the election, it's been like a frenzy and i think we'll see it throughout the rest of the year. stuart: all right, your book is "how rich people think" so you're telling us that they think in terms of reducing the tax bill. is this extended beyond stocks? i hear there's a lot of selling of real estate where you may have made a profit and art, we were quoting one 75 million yesterday. a big diamond that went for 21 million. is it an across the board selling? >> exactly. it's a mentality, it's a
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consciousness, in jewelry, real estate, in stock. every area they're selling off on. >> if they're selling off in every area, what are they doing with the money? >> you know, that's a really good question. i mean, that's the million dollar question. what do we do with our money now? we're looking for gulf's gulch and wondering who is going to build that lead up there, i don't know. that's a good question. >> that's interesting. you are in touch with all of these rich folks, we know they're selling assets and getting cash, but you don't know where that money is going? you want to guess? >> well, probably, well, probably the most common answer i'm getting, stuart, they're moving it off shore and i'm hearing lots of different countries they're moving it to and trying to find a safe haven because they know that the taxes are going to be higher than the obama administration is currently citing and they're afraid and they're terrified. >> that amounts to tax evasion, you move money off shore you've got to declare where it is and any income that you made on it. and are you telling us that rich
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folks are basically avoiding taxes? >> well, i think they're trying to be creative, like they always have been of the creativity makes the rich wealthy and that's what i found out over interviewing them over the last 30 years is that creativity is the best thing and i think they're trying to be honest about it, but creative. >> when does it come back to america? >> i don't know. it's a really good question, i'm asking them that and they don't know either. is america ever going to be the same? i don't know, four more years of both the obama administration, are we going to-- are we going to recognize this question after four more years, i hope so, i don't know. stuart: you're painting a pretty grim idea of the mood. it sounds like they're in despair. >> they are. there's no question. i mean, after the election, i never have seen and talked to more depressed rich business owners than on november 7th. i mean, i've never, never experienced anything like it in years working with the wealthy. stuart: when we're talking the wealthy, business executives, people who made money in
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corporations, are you talking about inherited wealth. talking about traders? what kind of rich people are you talking about? >> yeah, most of the entrepreneurs, that's the group i work with the most and interveered the most, they're entrepreneurs, and some corporate executives and people that built their own business and came from nothing. no one inherented, i don't work with the inherited wealthy. stuart: wouldn't touch them with a ten foot pole. >> no, i worked with them in the '80s and got away from them real fast. stuart: how do you explain then, if you're working with a lot of wealthy entrepreneurs, and disappointed with the election, didn't they vote for president obama? if you break it down by zip code where rich people live, there was a very strong majority in favor and voted for president obama. you want to explain this? >> it's not-- i tell you what if they're out there they're hiding, they're not the wealthy people that built businesses that i work with. these people all across the board voted for romney and you know, you can't blame them. stuart: okay. gloom and doom and despair among
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the rich. you heard it here, steve, thanks very much, indeed, steve. violence in the middle east, i want you to look at this video. three-israelis were killed after gaza attack, you're watching it now, aabbing that killed a military commander for hamas. 13 palestinians have been killed since that attack, and the rockets are still flying, air strikes between israel and the gaza strip are continuing and all of that keeps goingen israeli prime minister says his country is quote, prepared to expand the operation and others say that a ground invasion is a strong possibility if hamas doesn't stop firing rockets. hamas has responded saying, quote, the occupation has opened the gates of hell. this has had a direct impact on the price of oil. it's up, not much. it's up a little, but the down trend that we saw recently appears to have come to an end. 86 bucks for oil.
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as for gold, no real impact there at all. the nine inflation figures, gold 1721 per ounce. president obama defended u.n. ambassador susan rice's explanation for the benghazi. >> for them to go after the u.n. ambassador who had nothing do with benghazi, and making a presentation based on intelligence she had received and to besmirch her reputation is outrageous, should i choose, if i think that she would be the best person to serve america, in the capacity, the state department, then i will nominate her, that's not a determination that i've made yet. stuart: however, republicans are questioning why ambassador rice was even involved in the first place. here is congressman lindsey
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graham from yesterday. >> i can't believe the president said that we sent someone out to explain benghazi who had nothing to do with benghazi. that's pretty stunning. why did they pick her? if she had nothing to do with benghazi, she's not in charge of conflict security, she works in the u.n. why nobody from the state department? i believe she's a close political ally of the president ic . stuart: there's a controversy for you. another headline from yesterday's news conference, a main item on the agenda for the president in the next four years, it's climate change. if you listen to the president carefully, he's all in on this. and probably means regulation, a gusher of money coming into washington. here is new at 10 we'll tell you exactly what the president said. that's top of the hour on climate change. now, we'll get to toyota. bouncing back, is that right? and nicole, i want to know how much it's bouncing back, but why is it doing it. >> sound the bells and the whistles, throw the confetti.
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take a look here at toyota motor. it's a great day when you start to see a company trying to do the right thing, doing recalls in order to, in this case, fix water pump defense and we heard about 2.7 million recalls yesterday from toyota motors and much more forthright than years ago. here it is bouncing back after selling off. >> that's interesting, nicole, if you're forthright about a recall and a problem with many so of your cars, you're rewarded with what, a 4% bounce of your stock, that's interesting. >> you know, it's the right thing to do, ahead of the game and the article i was reading is about brand division and how many recalls can people really handle. so, that's the one, you know, the ball in the air there for toyota. stuart: nicole, thanks very much indeed. by the way, the dow is now on the upside. a gain of 27 points and if you look at the screen carefully, we've got one of the bugs on the bottom right corner and that's wal-mart, it's down 3 bucks at this time. and wal-mart, poor earnings, poor outlook and it has revealed
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that an internal investigation into bribery, foreign bribery, may involve more countries. that's a negative for wal-mart and we'll keep it up throughout the program. the dow is up 26. i've got your seven early movers for you, better than expected at the retailers called the buckle. it's down 4%. and diamond foods, restated, i should say restated financial results erasing 56 million dollars worth of profit and of course, it's down 20%. and texas instruments cutting about 1700 jobs, roughly 5% of the work force. it's moving into the mobile market, cutting the workers there, it's up a little. another teen retailer, hot topic, profit up 38%, strong sales, it's up not much. dryships, it lost more than expected. down it goes, below 2 bucks a share, it's an 8% loss and more people buying $30 spatulas, our producer has a thing about $30 spatula, he hates them.
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they're from williams-sonoma, and the sales were up strong, big boost of profits, nonetheless, $30 spatulas, brings you down to 44 bucks on williams-sonoma and people spend money on your pets. i know that since i bought my first dog. and raised the profit outlook, that's up 4% and the dow industrial is up 18 points, more than 70% of latinos voted for president obama last week, and that's even more than in 2008. and after the break, a frequent guest on "varney & company" who called it wrong. so why do latinos back the president so strongly? an explanation coming up. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations,
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>> suppose you could stretch a point and say the obama selloff
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has come to an end and the dow is up 8 points, but down over 600 since the election, move on. check the price of oil. 86 a barrel today fighting around gaza keeping the support line under the price of oil. now, it's time to bring in another of our guests who got the election wrong. and it wasn't just me, no, nationwide, 71% of hispanics voted for president obama, that's a bigger percentage than the president got back in 2008. and jennifer predicted he would lose support among hispanics and jennifer is with me now in new york. you were wrong. >> hello, stuart. stuart: i was wrong, you were wrong, so why? >> good thing you only asked me about florida, i was only wrong in one state. stuart: i maintain with you on this program that president obama had bought the support of hispanics by offering amnesty against deportation, you said wrong, wrong, that the hispanics would vote for more jobs and were going to greater numbers
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for romney, you were wrong. >> well, in the polling, six months out, even four months out, hispanics said economy and jobs were the number one issue. immigration was like fourth, fifth. about a month out, immigration moved up to number two. stuart: the amnesty that bought it. >> i don't like to say amnesty, it was deferred action for undocumented children, so to me amnesty is just a free ride. stuart: but that was the name that was attached to it. >> right. stuart: free ride was attached to it and 7 more percent for president obama. >> and before the election, for the children of undocumented children were political. it it smells political, it was political. but hispanics like the policy even though they like-- that it was political. stuart: hold on one second, breaking news. united suffering a nationwide problem with computer systems. that's united airlines, okay? problems nationwide with computers. we know there is a problem with
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united getting out of laguardia, and they're checking, we are checking to see if this is a nationwide problem. it may well be. we'll see about that and bring you up-to-date on it, but anytime there's this kind of travel disruption, and this is travel disruption, we will bring you the news as it happens and it just happened. back to jennifer. what, what should republicans do? should republicans go out there and make speeches in spanish? >> no. stuart: should they change the policy, open door, come in? >> what hurt conservatives one extreme or the other, we're going to pander up, and that's not what we're talking about, talking about true engagement, going into the hispanic chunt and talk to them about what the message is. >> and do you think that that would-- >> absolutely. stuart: go to the hispanic community and speak. >> congressman joe heck-- >> in spanish? >> not in spanish, but speaks to the community in nevada won his reelection with hispanic support. it's about going into the hispanic community not two
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months before the election, but a year out, six months out and actually talking to them about the message. we talked about this. hispanics are conservative when it comes to issues, talking about state and family and the jobs and economy. it's an engagement problem first. second, yes, we've the got to change the tone. stuart: jennifer, i want you to come back and tell us if indeed the republicans are engaging the community. >> i will. stuart: gold report. 9:50 eastern. where are we? 1707. that's a 22 point loss, gold is down. and mitt romney speaks the first time since the election, he's apologizing, and according because of the gifts that the president promised the voters. and the response to romney's big surprise and the reason next.
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>> that breaking news story continues, united airlines suffering a nationwide problem with computer systems. now, we've got a producer at laguardia airport who says all united flights out of laguardia
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are grounded. whenever you get this kind of computer glitch with an entire system in an airline as big as united you've got a travel prem b problem. we'll keep you up-to-date. mitt romney held a conference call with big donors, he said he couldn't compete with quote, gifts that president obama was offering. romney said somebody making 25, 30, 35,000 a year told you're going to get free health care worth what, $10,000 a family in perpetuity, this is huge. what do you think, charles. charles: i think the conference call was weak. i'm troubled what he had to do, he had to explain and yell, you know what, those are wooden horses they're in the gifts they're wooden horses and don't let them in. and instead whining, it's not a gift, it's a curse. qualified for health care it's not a gift, it's a curse. letting someone else pay your
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college loan it's not a gift, it's a curse. guess what 20 years from now, you'll pay someone else's loan and i think he went out-- >> and i think you've got 15 seconds, go. >> i agree with charles and lots of gifts hey give me the stuff. they wanted the stuff and voted for him. too bad, too many entitlements in our country and it's sad jo people like free stuff and explain why it's not a gift, but a curse to the people getting it. you know what? at the end of the day it's a curse and it's a curse for them and a curse for america. stuart: we just had to drop ten news stories because you drone on, no, no, absolutely, you're charles, right. and yesterday, the president says climate change, that people call it. you know what that means, gushes of money, but an alba interests for taxpayers. that's new at 10 and that's next.
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speaking and a firm believer that climate change is real, it is impacted by human behavior and carbon emissions and as a consequence we have an obligation to future generations to do something about it. stuart: president obama believes climate change is real and caused by humans and something needs to be done about it. that something may be a carbon
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tax which means tighter stranglehold on business and more taxes on what you by. that is a new at 10:00 story coming up. check the big board. we are down 40 points. i can now say -- 3.34%. is that correct? 3.34% is the 30-year fixed-rate mortgage number from freddie mac. that is an all-time low. 3.34%. the philadelphia, the fed index just released-10 reading, that is negative and helps the market go down a little bit more. more on this breaking news story. united airlines offered nationwide problem with computer systems. we have a producer at la guardia who says united flight out of la guardia are grounded. this may be a nationwide problem. here is the company this thursday morning. gop strategist with us, charles payne you already heard from, he
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is with us but he has calmed down and nicole petallides on a floor of the stock exchange right there. you heard president obama say it, he thinks climate changes relent caused by human behavior. the same day california does the cap and trade auction could that be coming to the rest of the country, carbon tax of some point. you are shaking your head but surely a carbon tax, a gusher of money to washington. isn't that in the cards? >> we have to take care of all these people the guaranteed the entitlements and he said we couldn't tie this to any particular whether even. would you tie it to? stuart: do you think we will get a carbon tax or cap and trade operation of some sort. >> everything and anything. this will be the biggest tax present we are ever had because we're in so much debt, have to
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tax anyway possible. stuart: more on this breaking story about united airlines. united telling passengers all of its flights grounded and they should read book on other airlines. this is the result of a computer problem. united has not commented officially. the faa says it is unaware. the stories clearly developing. joining us is former inspector general at the department of transportation. thank you for joining us. we are in a state of shock that a computer glitch -- i don't know the nature of this computer problem should bring an airline to a halt, an entire huge business brought to a halt by a computer glitch. don't they have backup systems? >> they do but united has been be doubled with these computer glitches, they had won in march, when in may and one in august and in 2001 they had one back in june that didn't bring the entire system to a halt but it has only gotten worse since the
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merger with continental and this is the worst time of year for to happen. stuart: right before thanksgiving, united stock is down but not by much. my point is if it is just a localize computer problem and it appears to be a problem certainly at laguardia in new york, that very rapidly spreads nationwide because flights get backed up all over the place. a local problem is rapidly a nationwide problem. that is the way the system is set up. >> exactly how is set up and they will try to reroute their traffic through other centers what happens is the bubble effect with passengers and right at this time of year planes are running 90% full so is going to be impossible for revoking because other airlines are full too and it will remain that way until the week after a thanksgiving. it is bad news for united. the good news is consumers have
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very small airline alliance and its united as the best fares consumers will be back on united. stuart: i get the point but when this kind of disruption at this time of year on such a massive, potentially a massive scale you have to shake your head. you know what i am talking about. it doesn't get better. >> this is the fourth time this year and you would think certainly there i t department would have been on this before now. march, may, august and now november. stuart: thank you for joining us on such short notice. there is a computer problem that united. it certainly, united's operation and la guardia. a lot of flights are grounded. we waited to see if this is an entire nationwide problem. it is a developing problem and a big developing headache for people travelling by air today.
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we will keep you up-to-date. the congressional budget office is predicting economic consequences of raising taxes on a ridge. the cbo says 200,000 jobs will be lost if the bush tax cuts expire for only the highest earners, tax the rich you lose 200,000 jobs but that is not stopping the president. >> we should not hold the middle class hostage while we debate tax cuts for the wealthy. we cannot afford to extend the bush tax cuts for the wealthy. what i am not going to do is to extend the bush tax cuts for the wealthiest 2% that we can't afford when it comes to the top 2%. what i am not going to do is to extend further attacks cut for folks who don't need it which would cost close to a trillion dollars. stuart: we are talking about
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raising the tax rate for the top 2% of income earners. stuart: charles: that last line for folks who don't need it -- $250,000, that is the cop, that is wealthy? they don't need it? we just had a discussion about free with of course they wanted. it is not the government's money. the whole thing has been turned upside down with every time we have this discussion is government money and i am getting it from them. we earned this money and we would like to keep as much of it as possible. it is disastrous, envious, punitive, not economic policy. stuart: a moment ago you said we are going to get some kind of climate change tax, carbon tax or whatever. will we also get an increase in the top income-tax rate? >> i think he is going to increase that. i don't think will be the top 2% but everybody, he is saying that now. he will tax across-the-board. charles: before all is said and
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done. [talking over each other] stuart: he is talking come january 1st, all george bush tax cuts save in place except tax cuts for the top 2%, and that will be his position on this fiscal cliff. i say he gets his way. charles: i don't think it will be too -- [talking over each other] charles: so many small businesses the president mentioned families and small business as obligations, two days ago bono was at the white house. where are the small businesses? the entire thing is a farce. stuart: you think it will not be 250 but more alike -- [talking over each other] charles: some compromise and that might be it. stuart: that is a compromise. four more years of president obama means obamacare -- it will stay in place. joining us is dr. ben carson
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from johns hopkins university, the foremost neurosurgeon in the country and he just got out of surgery. always a pleasure. thanks for being with us. i want to run down a list of things that you object to in obamacare. am i right in saying you believe it will be fewer doctors because of obamacare? >> yes. the reason there will be fewer doctors is because right now one of the things that makes quality of life of doctors so difficult is they have to see so many patients in a short period of time in order to maintain fiscal liability. that number will increase now buy thirty-two million. couple that with decrease reimbursements from medicare and medicaid, you will find less and less satisfaction, more and more pressure and that is why you see
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so many concierge practices all over the country. these doctors don't take any insurance and they take -- provide primary care. that can't continue under obamacare. they will have to put an end to that. they will have to couple for instance a physician's license with the number of medicare patients that they see. some manner to do this. it will not sit well with doctors. stuart: how about procedures? do you think certain procedures will be not allowed? >> if you look at the european model, england for instance, and noticed that people over the age of 60 or 65 don't get kidney transplants, that is part of the policy. that means most of our supreme court justices would not be able to get a kidney transplant.
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these kinds of things necessarily come into a restrictive system when we allow money to be the main issue. here is the ironic thing about that. we spend twice as much per capita on health care as the next closest nation. not the we don't put enough money into it but if we continue to throw good money after bad money without reforming the system than we are going to end up with european-style health care. stuart: drug going to cost more. correct? >> drugs, potentially will cost more. medical devices, starting january of 2013 medical device manufacturers will have an additional 2.9% tax immediately placed upon them. quite naturally they will pass those costs on. the same will occur with drug manufacturers. told gamut of people. you mentioned in your previous segment, tax tax tax, that is the only way you can deal with
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the ever increasing amount of debt we are dealing with and it is not even enough. we have to deal with the primary issues. stuart: i know that you have to get back to surgery so we will wrap this interview, sorry to cut it short but more important job than i do. >> at some point i want to talk about real solutions to health care because there are some. stuart: when you finish your surgery come back on another day because we want to talk to you about this. not want to break in and give the latest on the united airlines situation. we are seeing tweets from around the country, portland, san francisco, new york, people stuck on runways. united airlines telling passengers all its flights are grounded and they should read book on other airlines. this is the result of computer problems. united had not yet commented officially, the faa says it is unaware the story is developing and we will update it for you
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throughout the program, throughout the day. surprise surprise. more in sanity in california. jail time for washing your car in your driveway, water on sidewalks and not cleaning up after your dog. jail time? really? finally gone crazy in the golden state. the judge is next.
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stuart: breaking news from united airlines. the union software used by united ground operations. it is an update on how to fix computers. on all flights grounded on other airlines. and united has not made an official comment, where that it is a developing story. robert gray is on the ground, and working on a story as well. all working on the story. back in a moment.
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stuart: we spent three years telling you about the craziness in california. it is hard to surprise even us but they have done in. new proposed law in san diego means jail time for people who get water on the sidewalk while watering their lawns for washing a car and drive way. and for failing to clean up after -- you wicked criminal.
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all rise, judge andrew napolitano is author of this book, theodore and woodrow. my name is mentioned in it. [talking over each other] stuart: we have been through that. san diego, you allowed dog food in your own backyard, not part of a homeowner association, any backyard, and you will be fined and you could go to jail. judge napolitano: this is -- does not recognize limitations of its own power. i speak of the whole state. egregiously overregulated, created a horrific and tie business environment and a state people are leaving in droves. i could be sarcastic and say what do you expect?
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the constitutional analysis is your backyard is private property so unless there is aggressive harm going on to someone against their will or harm emanating, hurting somebody else the police have no right even to consider what you are doing. secondly the constitution not only requires fairness the proportionality meaning the punishment must sued the crime and the essence of crime is harm. who is harmed by splashing water on the sidewalk? who is harmed when you wash your car on a saturday? who is armed when the dog release itself and the fertilizer in the garden. stuart: who is harmed by this or that? the plan that. judge napolitano: that is a tenuous argument at best and i know they will make and in fact we talked about this before barack obama was reelected when we speculated what he might do if he were stymied by the republicans controlling one house of congress. he still ontrols the e p a and they can write regulations like
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the characters in san diego and they can fix their own penalties and not much the congress can do. stuart: water on the sidewalk and dog food in your own backyard is done for environmental reasons, that is the rationale. judge napolitano: even if one could seriously say this is harmful, one could not say jail time or $100,000 fine or the police going your backyard is an appropriate use of government power. stuart: it is symbolic. we don't want you to do that. judge napolitano: symbolic of governments, to intrude into private property and private decision, the things governments are supposed do which is preserve our freedom. stuart: environment is the best excuse of all. judge napolitano: they will say excelling is harmful to the environment. see how they correct that. stuart: they will never go
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far. [talking over each other] judge napolitano: do they care about the constitution? stuart: you are our constitutional scholar and you keep bringing us examples whether the constitution is violated, nothing happens. judge napolitano: they continue to get away with it. i hope the first person find because the police just a fence without a search warrant in the backyard or the first person who is fine because they splashed water from a flower on the sidewalk challenges the constitutionality. stuart: you are missing the point. the first person to be fined because the cow jumped over in the search for dog food has to hire a lawyer. that costs money. $10,000 to represent you. judge napolitano: it might be cheaper to pay. stuart: of course. judge napolitano: some people believe these things ought to be challenged and i hope one of the people they implicate in this has that viewpoint because the legislature will do what it
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wants and the courts let them get away with it but sometimes the courts to be sent personal liberty in a free society. stuart: anything to add? charles: i am worried about this whole thing creating a neighborhood police force were your neighbors count of coop in your backyard -- judge napolitano: a neighbor can report your hoot in the backyard. the the report what you doing your basement which is not harmful? where will it stop? >> because the harbor oak this is a way -- easy way to make money. they collect speeding tickets. judge napolitano: i think the limits of taken over the asylum. can i take that back? [talking over each other] judge napolitano: theodore and would grow. the bookstore should be that. stuart: i you done?
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[talking over each other] stuart: it is nine days since president obama won his second term. my take on the future of america is next. having you ship my gifts couldn't be easier.
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no update on how they say it will take to fix the computers. people from all across the country tweeting that they are stuck on runways and scrambling and airports. president obama is flying into new york later today. this is sure to create even more headaches. everything is now pushed back, delayed and no timetable as to when the computers will be up again. problems at united. where is united stock? nicole: the stock is slightly lower. the rest of the airline stocks, when you look at jetblue or delta, the one name that is
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really lagging this industry today is united. this could potentially be a huge, huge story. stuart: i am going to interrupt you. i just got this unofficial tweaked from united airlines quoting now. we are working to resolve this issue. we will update as we have more details. nicole: you just want to take your computer and throw it. it is so incredibly frustrating. stuart: we have learned that some of the smaller flights are able to take off. they do have a problem with jets and that is quickly spreading as a serious problem. thank you very much, indeed. here is my take on america. nine days after the reelection of president obama. i have a growing sense of
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unease. our country is not doing well and i do not see a plan that will turn things around. the stock market has gone straight down. that is ominous. if the future looks bright, stocks go up. this selloff is not good. how about the economy, do not tell me it is strong, do not tell me it is robust because it is not. the president plan to tax the rich. then there is the debt. that gets me really nervous. in the last ten weeks, we have added a quarter trillion dollars. that is a quarter trillion more debt in ten weeks. the president's plan -- fighting in the middle east. do not worry says the president.
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we are investigating. it has not been a good start to mr. obama's second term. i would not be concerned that much if it was a clear plan to get america working again. there is no such plan, it is just same old, same old. i do not like the client and i do not think the rest of america does either.
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stuart: updating you on a major breaking story we broke on varney & company. the software is the ground crews use to refuel and waive baggage is down. all united flights are grounded. we contacted united and this is what they have to say. "we are aware of a computer issue affecting some of our flights. we are working to fix it. we will update it as we have more details." they are stuck on runways, scrambling and airports. united is telling passengers to book on another airline. express flights are taking off. this is the third major computer glitch at united.
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solar, wind, art, gold, real estate stick with that as an investment portfolio. >> some of those are a little more liquid than others. this is one of those few times the government is basically telling you to be in that. with a 40 billion that they are putting in every month, it is one of those things that you very rarely get. we will see those things and play. where is the inflation? cpi that consumer price index, up. that is not inflation. >> we do not have a plan. that is why we do not have inflation. our companies did not do very well the last quarter.
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they have more cash on the books than they did in 1955. let these ceos know where we will be going over the next four years. you will see some jobs and you will see that housing market pick up. stuart: always a pleasure. thank you for joining us. president obama holds a news conference. the media does not go after him on benghazi or general petraeus. >> thank you, mr. president and congratulations, by the way. >> you were there when i was running for state senate. >> that is right. i was. i have never seen you lose. i wasn't looking that one time. [ laughter ] stuart: joining us now is tim graham of the media research center. i want your judgment on that press conference. i think the press was just simply warning that they are in
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love with a president obama second term. >> after months and months and months of obama stiff arming the press, this is their ferocity. you have a benghazi question from john kyle of abc and we got a benghazi question from ed henry at fox news. stuart: i will say the media is not doing its job. this lack of a follow-up. there is no desire to chase something down. it is just not there. i do not think it will change. >> that would be the concern. the obvious question in this press conference yesterday, if we are going to advance the ball on benghazi is to ask a similar
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question as ed henry asked. what did you order, what did you do, what did you say, what did you know? these are the elementary questions. for them to ask if he had met with mitt romney yet is an embarrassment. stuart: why was the president not asked why susan rice was put out front to explain what happened in benghazi in the first place. the president himself said he had nothing to do with benghazi. why was this going on back i think susan rice would find that embarrassing. for her to be said that she had nothing to do with benghazi. she was obviously being a good soldier going out and lying on five networks. this is really amazing. what the news media is doing, as you suggested, the truth is up to somebody else.
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they are not here to determine whether the administration told the truth or not. that is an irrelevant point. stuart: i hear you, tim. i have to break away. i have more on this developing story. our producer at laguardia airport saying that some computers are back up. they are boarding flights to chicago and houston. no promises when they will take off. however, there is computer activity. we have until you about a major computer problem at united. it is the software that the ground crews used to waive baggage and refuel the plane. there has been a glitch in it. now we are hearing that some computers are back up again. planes are loading, but not all of them. we do not know when they will take off. there is computer activity back at laguardia airport. united took over continental. united stock has been down earlier this morning. because united was telling some passengers to refocus on other
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airlines, other airlines stock has in fact gone. united on the downside, a loss of 1% there. people did not like this. when there is chaos and confusion and it solves up your entire network nationwide, people do not like it. there is chaos at the airport, passengers get stranded and you miss your connection. you do not like it. that is what happened this morning. some computer activity has been restored. back in a ] moment. ♪ by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it's an all-you-can-eat buffet for all things trading. thinkorswim by td ameritrade. it doesn't just deliver news. it's making news. trade commission free for 60 days, plus get up to $600
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>> you heard it first. you heard it here. we are talking about the breaking news on united airlines. there is a nationwide computer problem for the airline. some computers are back up. all united air flights are still grounded at this point. varney & company broke this story. the software glitch involves the program used to refuel and waive baggage. there is no prediction on how long it will take to get everything back up and running completely normally again. twitter follows stories from passengers all across the country sharing stories about being stuck. we are now finally getting response from united.
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they are aware of the computer issue and we will keep you up-to-date on when we have it fixed. ♪
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stuart: the saga at target continues. the company is opening its doors on thanksgiving night. 9:00 o'clock sharp, apparently. there is a growing over the people that are not happy about it. customers, employees, shareholders signing a petition. it calls on target not to open.
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less than one third of employees will work on thanksgiving and will receive time and a half, plus additional compensation for the hours worked between thursday and friday morning. if you have any problem with making people, paying them extra for a telling them to go to work on thanksgiving. >> no. you know, if they are working, that is part of the job. stuart: does it spoil the holiday. are you spoiling it? >> i think it is okay. if you have the job, be happy about the job. [talking over each other] >> thank you for the job. stuart: no outrage about opening at 9:00 o'clock on thanksgiving night effect absolutely not. charles: this is fake outrage. stuart: what kind of americans are you? [ laughter ]
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charles: they like respect and have to earn it at the same time. pretty soon you'll be an opponent of obamacare. i have to watch out for you. [ laughter ] stuart: this is for you, charles, are we becoming an entitlement society. a nation of takers and set of makers. what is now called the snap program. what is the mindset of people who get everything, food, housing, health insurance from the government. are we a different country? always a pleasure to have you with us, especially since he reformed. welcome back. >> good to be with you. i am a californian now. not sure you really want to welcome me into your circle. stuart: and very worried about the golden state. would you make the judgment that america has changed, that we are now a different country than
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what we were four, five, ten years ago. that we are a nation of takers and not makers for smack go through that unfortunately, that is true. when ronald reagan was president we had most -- we had about 10% or so out of marriage. now we are looking at 40% out of marriage. we have become a very different country. we have also become a country that expects to get benefits. when you expect to get benefits, somebody has to deliver those benefits. stuart: has president obama encouraged that by giving more stuff and encouraging people to vote for the guy that gives you more stuff? >> well, he has put it on
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steroids. it is not overnight that this has happened. we have filled out these ideas in our youth, especially through our government schools that they are entitled to benefit. what we have seen in the last four years is much more activity. when you have peter and paul and it is okay to take from peter to pay paul, then, yes, you have more false. stuart: you will not disagree with this, will you, charles? >> absolutely not. stuart: i did not know what we do about this. i am saying that society has changed. we are now a nation of takers. how do we change that, charles? >> everyone wants free stuff. i am sure i get your attention if i say buy one get one free. we all want three things. however, when people accept this, when you accept the idea that i can just have this stuff,
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there are consequences to it. by the way, if you are on free healthcare and your kids are born under that system, it is not a good thing to be on it. when you get stuck in these environments that you are hurting them more than helping them. >> these are moral questions. there are great cost. when you look inside of every urban center, using 100% of government takeover. this is not a pretty picture. you do not have specialists like ob/gyn doctors. you do not have any type of quality care. you do not have to go to cuba and canada to see what happens. stuart: i have 30 seconds. how do you stop giving and still get elected? >> well, you fight for vouchers and you change the culture again. you make sure that people in the schools understand youth. understand that it is theft.
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there is something wrong with this. these are moral questions not economic questions. stuart: we always like it when you bring us back to the moral compass. >> there is more on the way. stuart: we could talk on the on the time. thank you for coming back to see us. president obama talks more taxes for the rich. will the republicans caved in to his demands. we will ask that question next. ♪
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stuart: united airlines tells fox business that their computers are online and getting back to normal. we have been telling you about a big computer problem. it appears the problem has been resolved. the delays rippled throughout the system. keep it right here for more on this story as it develops. president obama insisting on raising tax rates for the highest income earners. he is open to compromise, but only if the compromise includes tax hike rates for the rich. congressman, i do not have much time, i will get right on it.
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i think you republicans will cave. i think you will accept higher tax rates for the rich. that will be at some point in the month of december. tell me that i am wrong. >> i think you are wrong. it is not a plan, it is not a solution. the president has now put anything down in concrete terms on the table. we will the go ship with ourselves. we produce budgets every year since i have put in congress. what we need, stuart, is long-term structural reform. stuart: i know what we need. [talking over each other] let's fast-forward. it is the last week of december. you have not agreed. you have not caved. the president says you are going to push america into a recession because you are defending your billionaire pals. give in, cave, and i think you will. >> i disagree with you. the president needs to lead on
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this not simply fill out one number. we should not punish anyone for being successful. that is not a plan. we have to get 218.2 pass anything. if you do not have the 218, i don't think you have 218 republicans who want to raise taxes on the american people in the recession. it will be the president cliff. it will not be congress' cliff. stuart: the political reality is that you are defending the rich. the political reality is that you lose doing that. you will be seen as pushing everybody over the cliff. i do not want this. i am not in favor of this. i am saying that this is what i think will happen. tell me i am absolutely wrong. tell me that you will not cave on higher tax rates for the rich. >> we will not pay for higher tax rates for the rich. everything has to be on the table, though.
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when december 301 is here, we will have to see what is on the table. like i said, if you can get long-term structural reform on the tax code and entitlements, what is that worth perfect is it worth raising revenue. possibly. we have to have this negotiation, but i think you are wrong, stuart. stuart: i am glad to hear it. not really. congressman, thank you for the discussion. back in just a moment. ♪ i always wait until the last minute.
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can i still ship a gift in time r christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery. your problem, united says its computer the back but that delays rippled throughout the system. they are getting back to normal. is yours. dagen: thank you. connell: i am connell mcshane. dagen: dagen mcdowell. that computer outage grounding united air

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